Medicaid Could Save Billions as Patents for Blockbuster Antipsychotic Drugs Expire

The expiration of several patents for blockbuster antipsychotic medications is expected to save Medicaid billions of dollars, as generic versions of these drugs are release. Researchers at the University of Maryland School of Medicine suggest that this transition may allow policymakers to lift restrictions to patients’ access to such medications, as high costs are reduced.
According to Pharmaceutical Processing:

The study forecast that annual Medicaid payments for antipsychotic medicines will decrease by nearly $1.8 billion (or nearly 50 percent) by 2016 and by $2.8 billion (or 76 percent) by 2019. The forecasting models were developed by the authors, Eric Slade, PhD, an associate professor in the Department of Psychiatry and Linda Simoni-Wastila, BSPharm, MSPH, PhD, a professor at the University of Maryland School of Pharmacy. The study, the first to look at these possible cost savings, was published in the July issue of the journal Psychiatric Services.
The researchers predicted changes in overall Medicaid spending for antipsychotics between 2011 and 2019. In 2011, Medicaid spent more than $3.6 billion on second-generation antipsychotics. Five branded medications — aripiprazole, quetiapine, olanzapine, ziprasidone, and paliperidone — accounted for $3.3 billion or 90 percent of this spending. Medicaid is the major payer for antipsychotic medications in the U.S., accounting for between 70 percent and 80 percent of all antipsychotic prescriptions.

 
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